They have an overwhelming task ahead of them

It is exactly one week since the Swedish central bank's latest increase in the key interest rate, the purpose of which was to defend the Swedish krona.

Since then, the Swedish krona has further lost value against both the € and the $. All our holdings are listed in North America. The slightest drop or rise in the Swedish krona is immediately noticeable because it affects our entire holdings.

While it's a treat to see the portfolio hitting new ATHs all the time, it's a negative in so many ways. As a resident of Sweden, it is sad that the Swedish krona is being slaughtered. Apparently, the Swedish krona is considered to have elements of junk currency.

Having a weak domestic currency that is considered a junk currency poses several dangers. First, residents in Sweden are becoming poorer compared to mainly Americans and residents in the EMU area. Secondly, Swedish companies are easier targets for both friendly and hostile takeovers. Finally, we import inflation into a situation when inflation is already high.

So far, the Swedish central bank's latest increase has had the opposite intended effect. Instead, this increase becomes just one factor that contributes to increasing inflation. The reason for the market's response to the actions of the Swedish central bank is previous poor leadership for many years, which has seriously damaged the bank's credibility.